Riding the BDC Consolidation Wave

The past 18 months have seen a wave of consolidation among business development companies (“BDCs”). Oak Hill Advisors, L.P. took over the advisory role for NGP Capital Resources Company (now OHA Investment Company) after the BDC ran a process to pursue strategic alternatives, PennantPark Floating Rate Capital Ltd. acquired MCG Capital Corporation, and, as has been well publicized, TICC Capital Corp. has received advances from no fewer than three suitors. This article discusses what market participants need to know if consolidation is coming to the BDC space.